Crypto Drama Unfolds: BITCOIN Crashes Amid Conflicting ETF Reports
- Bitcoin's recent price turbulence stabilized near $42,500, showcasing market resilience with an 8% decline followed by a 2% recovery amid prevailing uncertainty.
- The Matrixport report suggests potential rejection of Bitcoin spot ETFs by the SEC in January, pointing to the cautious stance of Chair Gensler and the Democratic leadership on cryptocurrency.
- Investors anxiously await the SEC decisions in January, underscoring the regulatory influence on Bitcoin's path and underscoring the importance of forthcoming rulings.
BITCOIN Drops Amid ETF Rejection Rumor
The reason behind the Pumping
In 2023, BTC price surges by nearly 161%, closing successfully above the psychological threshold of $40,000.
Bitcoin recently experienced an upswing, surpassing $45,000, reaching levels unseen since April 2022.
Two key events fuel the rise in Bitcoin prices: the fourth halving event and the pending decision by the US Security Exchange Commission (SEC) on spot BTC ETFs in the US.
Buy the rumor, sell the news
The cryptocurrency market grapples with "sell the news" sentiment amid resistance in Bitcoin and Ethereum.
Bitcoin experiences a brief surge, surpassing $45,000, followed by a sudden drop, erasing $550 million in long positions and $50 million in short positions.
Market turmoil ensues due to a Matrixport blog hinting at potential SEC delays in approving ETFs.
The notable drop occurs ironically alongside the release of a celebratory video from ETF applicants Galaxy and Invesco, commemorating Bitcoin's 15th birthday on January 3.
In the previous news, a decline of 8.51% from $45,300 to $41,400 leads to the liquidation of approximately $600 million in holdings.
Concurrently, total open interest experiences a sharp decline, moving from $18.66 billion to $17.72 billion.
The collective crypto market cap shrinks from $1.82 trillion to $1.72 trillion, witnessing a disappearance of over $100 billion.
On December 2nd, Bitcoin reached its peak at $45,900.
Bitcoin crashed by 8% in two hours, hitting a low near $41,500. Ethereum also experiences a 6% plunge during this flash crash.
Among the top 100 digital assets, over half experienced double-digit losses for the day.
Uncertainty increases as a crucial approval criterion remains unmet, possibly prolonging discussions until Q2 2024.
Coingabbar predicts a potential 20% Bitcoin price drop, ranging from $36,000 to $38,000, in case of ETF rejection, triggered by the liquidation of assets linked to ETF approval expectations.
What's the future of BITCOIN
Recent SEC meetings with stock exchanges on Spot Bitcoin ETFs introduce uncertainty.
Potential outcomes of these meetings may influence Bitcoin's integration into mainstream investments.
Despite a market rebound, investors eagerly await SEC insights into its stance on spot Bitcoin ETFs and their broader financial market impact.
The market rebounds, trading 2-5% above the recent low, having absorbed the impact of panic selling.
Investor optimism is high for a positive ETF outcome, instilling hope and confidence in the market.
